Yesterday, our team met with manufacturers, distributors and service providers in Kansas City for a discussion about the impact of tariffs on the business community. This insightful program included economic, industry and legal perspectives on current trade conditions and the various implications of recently-imposed tariffs. Pictured at right, Beau Jackson closed the event with these key takeaways:

1. The United States is 80% a “consumer” economy – compared to a global average of approximately 40% (and 60% in Germany). Yet, U.S. trade policy seems to focus on raw materials and industrial manufacturing, rather than consumer-driven considerations.
2. Finding qualified labor is a much more pressing and difficult issue for manufacturers than tariffs or trade policy
3. Rising logistics and supply chain costs have become just as troublesome to companies as tariffs
4. Carrier consolidation and new alliances in the shipping industry continue to adversely impact companies that import and export, and is complicating matters at U.S. ports of entry
5. Tariff avoidance led to an import surge in late 2018, which furthered port congestion, inflated storage costs and has created large inventory surpluses that could soon have macroeconomic implications
6. Supply Chain “Recalibration” – companies  and sourcing agents are trying to avoid China by finding new sources in Southeast Asia (particularly Vietnam and the Philippines)
7. The recent government shutdown had a tangible impact on the day-to-day fundamentals of trade
8. Good infrastructure, just like product quality and reputation, has been instrumental in fostering a robust U.S. economy.  Modernizing infrastructure is a must for the U.S. to remain competitive.